Noticia

Alibaba has eclipsed Amazon as the largest and most valuable e-commerce company in the world. In fact, the Chinese company is more valuable than Amazon and eBay both together.

Both firms are investing incredible amounts of money in their logistics lately. Amazon has now drones and Alibaba is investing in new logistics for rural zones in china, a market that is growing exponentially every year.

Amazon is the American market leader and Alibaba is the Chinese one, but as they cross their borders, they compete in a market that does not care too much about nationality, but in products and service. And they will face a really difficult time trying to export their business models to each other’s markets.

These two companies seem to have a lot in common, they offer a great scope of products at low prices, they both have a huge amount of data, and they have built e-commerce platforms uniquely suited to their home markets.

But Alibaba connects costumers with sellers; it has an ecommerce platform that helps businesses to reach consumers. In contrast, Amazon works closer than a traditional retailing, and has distribution centers where distributes their products, they are the master of logistics and supply chain management, and it is the world leader in cloud infrastructure services.

At the moment, Alibaba has conquered Wall Street, but will they conquer the Western customer as well? Will Amazon succeed extending their “think globally, act locally” strategies to China?